Comments on: Honey, I Shrunk the Startups! http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html Redfin Corporate Blog Sun, 22 Nov 2009 20:09:04 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Honey, I Shrunk the Startups, Part II | Redfin Corporate Blog http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-6577 Honey, I Shrunk the Startups, Part II | Redfin Corporate Blog Mon, 05 Oct 2009 05:43:06 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-6577 [...] opportunity, from someone who was a founder under 30. I won’t go into the full rant, since I already wrote that last year, but can’t help but comment on a few of Dave’s claims. (Dave already knows I adore his [...] [...] opportunity, from someone who was a founder under 30. I won’t go into the full rant, since I already wrote that last year, but can’t help but comment on a few of Dave’s claims. (Dave already knows I adore his [...]

]]> By: What Would Apple Do? Don’t Ask | Redfin Corporate Blog http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-6308 What Would Apple Do? Don’t Ask | Redfin Corporate Blog Wed, 29 Jul 2009 21:28:10 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-6308 [...] for these ideas: there’s more venture capital than ever before, but most VCs would rather invest $1M in 20 startups rather than the $20M one startup would need to build and market a consumer [...] [...] for these ideas: there’s more venture capital than ever before, but most VCs would rather invest $1M in 20 startups rather than the $20M one startup would need to build and market a consumer [...]

]]> By: Small is Beautiful, Too | Redfin Corporate Blog http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-5823 Small is Beautiful, Too | Redfin Corporate Blog Fri, 15 May 2009 22:25:46 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-5823 [...] otherwise? I can only assume that this beef began with a blog post I wrote last September, called Honey, I Shrunk the Startups. That essay took issue with two venture capitalists, Fred Wilson and Rob Monster, for arguing that [...] [...] otherwise? I can only assume that this beef began with a blog post I wrote last September, called Honey, I Shrunk the Startups. That essay took issue with two venture capitalists, Fred Wilson and Rob Monster, for arguing that [...]

]]> By: After the Great Recession: What Will the Startup Economy Look Like? | Redfin Corporate Blog http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-5406 After the Great Recession: What Will the Startup Economy Look Like? | Redfin Corporate Blog Tue, 17 Mar 2009 05:12:35 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-5406 [...] Startups have begun a retreat back to the garage, back to the rag-and-bone shop of the heart. It will do us all good to work our way out again. But it will take a long time, and many people will conclude that big ideas are, like some rare species of giant fish, extinct rather than waiting patiently in the depths. [...] [...] Startups have begun a retreat back to the garage, back to the rag-and-bone shop of the heart. It will do us all good to work our way out again. But it will take a long time, and many people will conclude that big ideas are, like some rare species of giant fish, extinct rather than waiting patiently in the depths. [...]

]]> By: A Very Tough Day | Redfin Corporate Blog http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-4051 A Very Tough Day | Redfin Corporate Blog Mon, 13 Oct 2008 19:34:20 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-4051 [...] Essential Service Our value proposition isn’t entertainment; it’s to make a fundamental service better and cheaper. We offer an alternative to traditional brokers that customers want, and not in some namby-pamby [...] [...] Essential Service Our value proposition isn’t entertainment; it’s to make a fundamental service better and cheaper. We offer an alternative to traditional brokers that customers want, and not in some namby-pamby [...]

]]> By: Web, Startup and Technology News: Weekend Rebroadcast | September 13th | Internet Astronauts :: Bootstrap Startup Blog http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-3769 Web, Startup and Technology News: Weekend Rebroadcast | September 13th | Internet Astronauts :: Bootstrap Startup Blog Sun, 14 Sep 2008 06:29:04 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-3769 [...] Honey, I Shrunk the Startups! [...] [...] Honey, I Shrunk the Startups! [...]

]]> By: Silicon Florist’s links arrangement for September 09 » Silicon Florist http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-3751 Silicon Florist’s links arrangement for September 09 » Silicon Florist Wed, 10 Sep 2008 06:57:18 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-3751 [...] Honey, I Shrunk the Startups! | Redfin Corporate Blog Via the Redfin Corporate blog “Venture capitalists are racing to miniaturize themselves toward the vanishing point. One of my favorite bloggers, Fred Wilson, recently asked why not ‘back 10 teams at $25,000 each instead of one team at $250,000′? Just last week a Seattle venture capitalist boasted that ‘we are seeing impressive companies being built for under $100,000.’” (Hat tip James Whitley) [...] [...] Honey, I Shrunk the Startups! | Redfin Corporate Blog Via the Redfin Corporate blog “Venture capitalists are racing to miniaturize themselves toward the vanishing point. One of my favorite bloggers, Fred Wilson, recently asked why not ‘back 10 teams at $25,000 each instead of one team at $250,000′? Just last week a Seattle venture capitalist boasted that ‘we are seeing impressive companies being built for under $100,000.’” (Hat tip James Whitley) [...]

]]> By: ToddH http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-3745 ToddH Mon, 08 Sep 2008 19:24:07 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-3745 Great post Glenn. I couldn't agree more. I often wonder which of these lightweight new breed of Web startups going solely for eyeballs is going to be the next Google or Cisco. Great post Glenn. I couldn’t agree more.

I often wonder which of these lightweight new breed of Web startups going solely for eyeballs is going to be the next Google or Cisco.

]]> By: Glenn Kelman http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-3743 Glenn Kelman Mon, 08 Sep 2008 02:16:46 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-3743 Hey Mike, good to hear from you. Everyone has a different experience, but I have noticed lately investors encouraging entrepreneurs to go light, iterate quickly, minimize funding, think about an exit from the get-go, which I think works best on media sites which use existing technologies. Many of these principles are generally valuable -- at Redfin, we still stay with friends on business trips and work late -- but you haven't noticed a shift toward earlier exits and narrower ambitions? Paul Graham -- who is technically brilliant and also writes gorgeous sentences -- has almost made it a religion. Hey Mike, good to hear from you. Everyone has a different experience, but I have noticed lately investors encouraging entrepreneurs to go light, iterate quickly, minimize funding, think about an exit from the get-go, which I think works best on media sites which use existing technologies. Many of these principles are generally valuable — at Redfin, we still stay with friends on business trips and work late — but you haven’t noticed a shift toward earlier exits and narrower ambitions? Paul Graham — who is technically brilliant and also writes gorgeous sentences — has almost made it a religion.

]]> By: mike simonsen http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html/comment-page-1#comment-3742 mike simonsen Sun, 07 Sep 2008 20:42:40 +0000 http://blog.redfin.com/blog/2008/09/honey_i_shrunk_the_startups_guide_for_scoring_techcrunch_50_at_home.html#comment-3742 fascinating perspective, Glenn. For what it's worth, in my vc experience I've never once encountered a vc inclined to nudge smaller. In fact, as you've pointed out for the Redfin business, to even pique the interest of the VCs one has to concoct a rocket-to-$100mil business plan. Even if you're raising a tiny amount, their eye is to the B round where they'll put a few million to work. Rather the shift I see is not that <i>businesses</i> require less money to start, or that somehow the disruptive spirit lacks (you guys are a great example), it's that technology companies, specifically Internet service companies don't typically require the capital that technology companies of the past 30 years required. What we see with the Fred Wilsons and the Y Combinators and TC50 is simply high-profile players investing in a low-capital sector. And that's fine. That is, entrepreneurial innovation has always plotted on the 2x2 matrix of capital intensity and disruptiveness. My guess is that Fred would argue passionately that the teams he funds are low-capital-high-disruption plays. But there are (big) potential successes to be had in three of the four quadrants (stay away from high-cash-low-disruption!) The difference is not in the ambitions, nor the gross capital requirements. Just where the spotlight is shined. fascinating perspective, Glenn. For what it’s worth, in my vc experience I’ve never once encountered a vc inclined to nudge smaller. In fact, as you’ve pointed out for the Redfin business, to even pique the interest of the VCs one has to concoct a rocket-to-$100mil business plan. Even if you’re raising a tiny amount, their eye is to the B round where they’ll put a few million to work.

Rather the shift I see is not that businesses require less money to start, or that somehow the disruptive spirit lacks (you guys are a great example), it’s that technology companies, specifically Internet service companies don’t typically require the capital that technology companies of the past 30 years required.

What we see with the Fred Wilsons and the Y Combinators and TC50 is simply high-profile players investing in a low-capital sector. And that’s fine.

That is, entrepreneurial innovation has always plotted on the 2×2 matrix of capital intensity and disruptiveness. My guess is that Fred would argue passionately that the teams he funds are low-capital-high-disruption plays. But there are (big) potential successes to be had in three of the four quadrants (stay away from high-cash-low-disruption!)

The difference is not in the ambitions, nor the gross capital requirements. Just where the spotlight is shined.

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